Underwriting Reengineering Frequently Asked Questions

Q. Why is DTCC redesigning its existing systems?

A. Our current underwriting systems, built and operated by DTCC's depository (DTC), continue to serve our current needs. However, we have had to make numerous updates and additions to the systems over time to accommodate the new types of securities and emerging asset classes. Making such changes is increasingly challenging and expensive. Consequently, the major purpose of the underwriting reengineering is to modernize these systems and integrate corporate actions, dividend payment and underwriting into a single platform utilizing enhanced functionality to capture the new asset classes. We also want to consolidate and streamline processing, generate further efficiencies, reduce costs and build in greater flexibility.

Q. Do I have to be a DTC participant to access the redesigned system?

A. No. DTC is designing the new underwriting system to be used not only by participants but also by transfer agents and underwriters who are not participants of DTC ("Correspondent Underwriters"). A DTC participant (clearing firm) must approve all activity for Correspondent Underwriters. The system will allow users to request eligibility for a new or older issue, confirm takedown amounts, and close an issue.

Q. How do I sign up and access the new system?

A. The new underwriting system will be accessible via a web browser through DTCC's SMART Network or the open Internet with a digital certificate. Users will be required to register for the new service by visiting the www.dtc.org web site. DTCC will let customers know about specific sign-on procedures well in advance of implementation.

Q. What information do I need to start the underwriting process for a new issue?

A. Most, if not all, of what you'll need will likely be found in the preliminary offering documentation, e.g., the prospectus, official statement, offering circular and offering memorandum. You'll need to know specific security information such as the type of security, name of the security, and the expected closing date. You will be required to submit the same kind of information that you do today—including issuer name, security type, closing date, CUSIP or ISIN information, etc.

Q. What if I'm unfamiliar with DTC security types?

A. That's no problem. DTC's new underwriting system will have an "Issue Type Wizard" to help you determine the type of security. We'll ask you a series of questions about the security to help you decide, e.g., Does it pay interest or dividends? Does it have a maturity date?

Q. Will I be able to find out the status of my eligibility request?

A. The new underwriting system will give users the ability to check the status of their
offerings. A "dashboard" feature on the home page will provide easy real-time access to view the status of eligibility requests, provide packaging and closing status, look up reports, and check the history of previously submitted issues. The "dashboard" will allow customers to manage the eligibility review, packaging and closing process at DTC far more efficiently than at present.

Q. Will I still be able to submit new issues using WUN or PUND? What about hard-copy submissions to DTC?

A. WUN (the depository's initial Web-based underwriting service) and PUND (an application on the soon-to-be-phased-out Participant Terminal System) will be discontinued upon implementation of the new system. DTC intends to file a rule change with the Securities and Exchange Commission to require electronic submission of all offering data and documentation. Hard-copy submissions will no longer be accepted.

Q. How will I be able to submit new issue data and offing documentation utilizing the new system?

A. DTCC will require electronic transmission of both securities offering data and offering documentation, e.g., the prospectus, official statement, offering memorandum or offering circular. Customers will be able to choose a number of different transmission options for submitting data. Customers can utilize a web-based screen, provide an electronic file, or have a vendor provide an electronic file. Offering documentation can be uploaded directly into the new system or, for a limited time after implementation, customers can continue to send emails with the document attached.

Q. What about requests for eligibility of older issues?

A. The new underwriting system will provide users with the ability to request the eligibility of older issues.

Q. What are the minimum systems requirements for accessing the new system?

A. These are still to be determined. But we plan to notify our customers of any needed systems changes well ahead of time so that they should sufficient time to make any necessary changes.

Q. Who do I contact for more information?

A. Denise Russo drusso@dtcc.com, or Lori-Ann Trezza ltrezza@dtcc.com